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You've heard the saying "Save the best for last." Well, you will need to determine which article was the best. However, this is the last article in this series.
A few weeks ago we talked about the "Gator Brain" thinking process and how it focuses on five elements of basic survival thinking. Now, let's talk about a new survival mentality; something that takes us beyond our primitive existence and gives us evolutionary staying power in our new blue ocean.
In today's competitive environment, we have survived by creating market segments that focus on our customer's differences; the new home buyer, the move up buyer, the downsizing buyer, etc. We have compartmentalized almost every aspect of our business operation so we can focus on our customer's dissimilarities. More often than not, we try to service even smaller segments or niches in our markets to give us greater differentiation. In so doing, we continually narrow our market options.
Where the Gator Brain segments its survival thoughts into very discrete functions, we must develop a holistic process, often referred to as the Gestalt psychology approach. It states 'the whole is greater than the sum of its parts.' In essence, what has more value for you: A garage full of car parts, or a car in the garage?
As energetic entrepreneurs in a highly volatile market, we must begin thinking about customers in a holistic fashion; we must think not about segments, but about commonalities of customers; identify their universal needs and wants. We must adjust our concept of markets and customers to include opportunities with non-customers.
Here is a simple example. Through the 70's and 80's golf wasn't nearly as popular as it is today. It was a sports market that favored the rich and talented and had few suppliers. In an attempt to expand their entry into that tight market, Callaway looked across the sporting industry and asked non-golfers why they didn't golf. The majority indicated that the sport was too difficult. Trying to hit a small ball with a long club was too intimidating. As it turned out, a huge number of current golfers were also quite frustrated with their lack of mastery of the game and as a result didn't play very often. Not playing very often meant their need for new equipment was marginalized, which keep Calloway from having a bigger portion of golf equipment sales.
Calloway realized the commonalities of their non-customers. If they could find a way to make the game a little easier, they would acquire a large untapped market, and potentially expand the current customer base at the same time.
By simply enlarging the head of the golf club, giving it a catchy name (after a famous World War I cannon, adding to the explosion metaphor), and telling people golf was easy now, Calloway revolutionized the golf industry.
Non-golfing sports enthusiasts now felt golf would be easier and took up the game. Naturally, the concept of making golf "easy" infuriated many of the traditional golfers and golf suppliers. In their minds, golf was designed to be difficult; it wasn't meant for everyone. However, within just a couple of years, golf pros (another non-customer group) as well as beginners, were using clubs like the Big Bertha.
Let's move from the fairway back to our blue ocean and visualize the non-customer base in three levels, with the surface being your current customer base.
We'll call the first level the Snorkeling Group. They exist just below the surface area making them the closest to your current customer base. This customer minimally uses your service offerings and is always in search of something better. You could think of them as the casual golfer that was in need of something that could better their game.
The Scuba Diving Group is a little further away from your market. They may recognize your service offering but refuse to use it. They believe they can do it without assistance. These people would be the golf pros and supply companies that challenged the concept of the Big Bertha.
Then there is the Diving Suite Group. They are the most distant from your current customer and the most unexplored. Yet, they can be the most lucrative market of all by offering insight into how to expand and improve your business offerings. Think of these people as those that started playing golf because they heard it was much easier to play with this new style of club.
Calloway identified a common need among the sporting community and removed a barrier that prevented Calloway from expanding their customer base.
As professional entrepreneurs, trying to identify the commonalities of our customers may resemble trying to hit a fly with a sling-shot. The difficulty can be overwhelming. However, if there is no attempt, you will guarantee no success. And we all know success doesn't come quickly; it takes time, planning and work. It's the same for developing new strategies and concepts.
Over the past few weeks an array of information has been presented in a brief and hopefully understandable manor. These concepts come from a couple of different books that were blended into a concept designed to help you look to new places and different ways of acquiring customers.
Thank you for reading these articles. But mostly, thank you for thinking about their content.
If you would like more information on thriving in the blue ocean, please feel free to contact me.
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